Market Analysis: Expected Fed to make a slight rate cut in September, Hong Kong Interbank Offered Rate (HIBOR) follows suit, providing positive support to the property market

The Federal Reserve has a rationale for the first rate cut within the year, expected to start as early as September. If the US interest rate falls, the Hong Kong interbank rate may follow suit to fall to 4% or below, providing positive support for the Hong Kong property market. The US Consumer Price Index has fallen for three consecutive months to 3%, making progress towards the 2% inflation target, with employment growth also slowing down. The European Central Bank and the Bank of Canada have also cut interest rates, coupled with future trends in inflation, financial markets, and labor markets, it is expected that the Federal Reserve will implement a "shallow rate cut". The rate hike by Hong Kong banks is expected to be modest, with the pace of rate cuts determined by the trend of interbank rates, external factors, and strategies. The new mortgage rate for Hong Kong banks will be maintained at 4% or above